Aust 'misused' $170m Iraq aid


A new report has found more than $170 million of Australian aid money earmarked for humanitarian relief in Iraq was misused to promote Australian economic gain.

Aid Watch says that instead of working to rebuild the Iraqi economy, Australian officials devised agreements to remove tariffs on foreign imports, including Australian wheat.

Aid Watch spokesman Flint Duxfield says the group is calling for an audit of all Australian aid to Iraq since 2003.

"Far from protecting Iraq's own food security, which was the stated objective of Australia's aid mission, Australian officials paid by AusAid focused on guaranteeing ongoing wheat contracts for Australian companies and removing subsidies and protections for Iraqi producers in ways that gave considerable advantages to Australian farmers," he said.